8 | National News DAILY NATION Tuesday April 15, 2014 ROW | Geothermal CEO has previously denied claims Agency boss sued over Sh2bn tender PAUL WAWERU | NATION Former Cotu officials Milicent Ngeso and Cornel Ogutu in a Nairobi court yesterday during the hearing of a fraud case against them. They have denied stealing Sh115 million from the union. The hearing continues on April 23. Ex-Cotu officials ‘stole Sh115m’ BY NATION CORRESPONDENT An “alien account” in the name of helping HIV/Aids patients and pregnant mothers was used to defraud Cotu of Sh115 million, a court heard yesterday. Secretary-general Francis Atwoli (right) told the court that former treasurer-general Cornel Ogutu and HIV/Aids programme coordinator Millicent Ngeso opened a parallel account into which cash meant for the main account was siphoned. The Cotu boss was testifying in a case in which the two have been accused of defrauding the union of Sh115 million. “The two accused were employees of Cotu and they initiated a plan allegedly meant to help members who were affected by HIV/Aids and pregnant mothers, but (they) turned (out) to be the ones benefiting from the money allocated to fund the project,” he said. He said that Mr Ogutu and Ms Ngeso had been given full support by the union to start the project, but instead opened a parallel account alongside the main one. “This account was illegal because it was not authorised or introduced to members of the board and was operational from 2002. We never even knew of its existence,” Mr Atwoli said. Mr Ogutu and Ms Ngesa were arrested on June 13 and August 7 last year. The case continues on April 23 when the defence will crossexamine Mr Atwoli. Petitioners claim Chinese firm was irregularly awarded deal by the CEO and want him out BY VINCENT AGOYA @royagoya vagoya@ke.nationmedia.com A director of a parastatal has been sued over a controversial multi- billion tender awarded to a Chinese firm. In a case certified as urgent at the High Court in Milimani, Geothermal Development Company chief executive Silas Simiyu is accused of irregularly awarding the tender. The tender revolves around the buying of an electrical rig which was awarded to Sichuan Honghua Petroleum Equipment after it quoted Sh2 billion(US$21.5m). The petitioners, Mr Ephan- tus Mbuthia Githae, Mr James Mwangi and the Kenyans for Governance lobby accused the CEO of refusing to “step aside” pending the outcome of an investigation which was triggered by a parliamentary committee. “By a letter dated January 9 2013 you unconstitutionally, illegally and without any authorisation from the board and the African Development Bank....purported to award the tender to the said Honghua limited...” read the suit papers. Sh3.8bn The amount agency secured from lenders in Novermber 2011 The petitioners argued that the director “materially” misrepresented his ability to award the tender. They said that the CEO did not seek or obtain the approval of the board when awarding the tender. “All the awards and result- ant contracts were signed by you alone...for and behalf of GDC without the concurrence and signature of any other members of the board of directors,” the petitioners said in affidavits before court. They cited a document dated December 16 last year between the State corporation and the company in which the contract price is in excess of Sh129 million (US$ 1.5 million). “Procuring an additional rig unilaterally without prior approval was a reasonable violation of the law and procurement procedure,” the joint affidavit read. Questioned The suit papers indicated that in 2011, the agency secured a loan of about US$ 45 million (Sh3.8 billion) from the Africa Development Fund to secure two rigs after agreeing to use limited international bidding tender procedures. In March, The Public Investments Committee also questioned Dr Simiyu questioned the director over the agency’s procurement of the additional drilling rigs. He however denied the claims. Single Cabin 4х2 at Ks. 1,995,000 including VAT �������������������������������������������������������������������������